Dundee Precious Metals (TSX:DPM) - Share price, News & Analysis

DPM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

DPM Stock Overview

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition of mineral properties, exploration, development, mining, and processing of precious metals.

Rewards

Price-To-Earnings ratio (5.2x) is below the Canadian market (10.6x)

Earnings grew by 12.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 7.9% per year for the next 3 years

Unstable dividend track record

Shareholders have been diluted in the past year

Dundee Precious Metals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dundee Precious Metals
Historical stock prices
Current Share Price	CA$6.95
52 Week High	CA$9.65
52 Week Low	CA$6.66
Beta	1.06
1 Month Change	-11.24%
3 Month Change	-11.13%
1 Year Change	-8.31%
3 Year Change	42.42%
5 Year Change	187.19%
Change since IPO	208.89%

Recent News & Updates

Jun 10

Does Dundee Precious Metals (TSE:DPM) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 05

We Like Dundee Precious Metals' (TSE:DPM) Returns And Here's How They're Trending

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	DPM	CA Metals and Mining	CA Market
7D	-3.2%	-4.9%	0.3%
1Y	-8.3%	-12.7%	-4.0%

Return vs Industry: DPM exceeded the Canadian Metals and Mining industry which returned -12.6% over the past year.

Return vs Market: DPM underperformed the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is DPM's price volatile compared to industry and market?
DPM volatility
DPM Average Weekly Movement	6.1%
Metals and Mining Industry Average Movement	10.9%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: DPM is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DPM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	n/a	David Rae	https://www.dundeeprecious.com

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition of mineral properties, exploration, development, mining, and processing of precious metals. Its principal operating assets include the Chelopech operation, which produces a gold-copper concentrate containing gold, copper, and silver and a pyrite concentrate containing gold located to the east of Sofia, Bulgaria; the Ada Tepe operation that produces a gold concentrate containing gold and silver located in southern Bulgaria, near the town of Krumovgrad; and the Tsumeb smelter, a complex copper concentrate processing facility located in Namibia. The company also holds interests in various developing gold, silver, and copper exploration properties located in Canada, Serbia, Bulgaria, and Ecuador.

Dundee Precious Metals Fundamentals Summary

How do Dundee Precious Metals's earnings and revenue compare to its market cap?
DPM fundamental statistics
Market Cap	US$1.03b
Earnings (TTM)	US$196.88m
Revenue (TTM)	US$657.21m

5.2x

P/E Ratio

1.6x

P/S Ratio

Is DPM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DPM income statement (TTM)
Revenue	US$657.21m
Cost of Revenue	US$371.58m
Gross Profit	US$285.63m
Other Expenses	US$88.76m
Earnings	US$196.88m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.03
Gross Margin	43.46%
Net Profit Margin	29.96%
Debt/Equity Ratio	0%

How did DPM perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

12%

Payout Ratio

Does DPM pay a reliable dividends?

See DPM dividend history and benchmarks

When do you need to buy DPM by to receive an upcoming dividend?
Dundee Precious Metals dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	3 days
Days until Dividend pay date	19 days

Does DPM pay a reliable dividends?

See DPM dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is DPM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DPM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DPM. This is calculated by dividing DPM's market cap by their current preferred multiple.
What is DPM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.03b

DPM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	2.1x
PEG Ratio	-0.7x

Price to Earnings Ratio vs Peers

How does DPM's PE Ratio compare to its peers?

DPM PE Ratio vs Peers

The above table shows the PE ratio for DPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.1x

Forward PE

Price-To-Earnings vs Peers: DPM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

How does DPM's PE Ratio compare vs other companies in the Canadian Metals and Mining Industry?

Price-To-Earnings vs Industry: DPM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the Canadian Metals and Mining industry average (11x)

Price to Earnings Ratio vs Fair Ratio

What is DPM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DPM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.2x
Fair PE Ratio	8.3x

Price-To-Earnings vs Fair Ratio: DPM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (8.3x).

Share Price vs Fair Value

What is the Fair Price of DPM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DPM (CA$6.95) is trading above our estimate of fair value (CA$3.61)

Significantly Below Fair Value: DPM is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: DPM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Dundee Precious Metals forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPM's earnings are forecast to decline over the next 3 years (-7.9% per year).

Earnings vs Market: DPM's earnings are forecast to decline over the next 3 years (-7.9% per year).

High Growth Earnings: DPM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DPM's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: DPM's revenue is forecast to decline over the next 3 years (-5.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DPM's Return on Equity is forecast to be low in 3 years time (9.4%).

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Past Performance

How has Dundee Precious Metals performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

68.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DPM has high quality earnings.

Growing Profit Margin: DPM's current net profit margins (30%) are higher than last year (29.1%).

Past Earnings Growth Analysis

Earnings Trend: DPM has become profitable over the past 5 years, growing earnings by 68.1% per year.

Accelerating Growth: DPM's earnings growth over the past year (12.7%) is below its 5-year average (68.1% per year).

Earnings vs Industry: DPM earnings growth over the past year (12.7%) exceeded the Metals and Mining industry -5.8%.

Return on Equity

High ROE: DPM's Return on Equity (19.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Dundee Precious Metals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DPM's short term assets ($548.7M) exceed its short term liabilities ($96.2M).

Long Term Liabilities: DPM's short term assets ($548.7M) exceed its long term liabilities ($75.7M).

Debt to Equity History and Analysis

Debt Level: DPM is debt free.

Reducing Debt: DPM has no debt compared to 5 years ago when its debt to equity ratio was 2.7%.

Debt Coverage: DPM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DPM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Dundee Precious Metals's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.97%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: DPM's dividend (2.97%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: DPM's dividend (2.97%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DPM has been paying a dividend for less than 10 years.

Growing Dividend: DPM's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.4%), DPM's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.2%), DPM's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure

CEO

David Rae (60 yo)

2.08yrs

Tenure

US$2,529,635

Compensation

Mr. David Rae has been President and Chief Executive Officer of Dundee Precious Metals Inc. since May 7, 2020. He has been Director of Dundee Precious Metals Inc. since January 1, 2020. Mr. Rae was Chief O...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.53M) is above average for companies of similar size in the Canadian market ($USD1.59M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: DPM's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: DPM's board of directors are considered experienced (3.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31